Prices for LPG are shown for the period 21-Feb-2022 to 30-May-2022 in Canada. During that time, the average value for Canada was 1.22 Canadian Dollar, with a low of 1.09 Canadian Dollar on February 21, 2022 and a high of 1.28 Canadian Dollar on April 18, 2022.
What is the current propane price per gallon?
The current propane price per gallon is higher than the same period last year. This means that propane costs are anticipated to climb throughout the United States over the winter season, and home propane budgets will have to account for higher propane pricing now. The current propane price of $2.337 per gallon merely represents an average propane price; you may pay more or less for propane based on your usage and region. However, it serves as a solid benchmark for today’s propane pricing per gallon.
Is propane becoming more expensive in Ontario?
Commodity experts warn that as oil and gas prices rise during the epidemic, propane costs will climb as well.
Its effects are being felt across the country, with a propane supplier in Timmins informing CTV that prices have risen by 200 percent in the area.
“Right now, it’s more than double what it was last year,” said Dominic Palermo, Timmins regional manager for Propane Energy Solutions.
Palermo stated that wholesale propane prices were in the $0.20 per litre area this time last year, and that current prices are closer to $0.60 cents. The additional expense is subsequently passed on to the consumer.
This has raised concerns about the effects on individuals in rural areas, as well as companies that rely on propane for heating during the winter months, such as construction.
What is the most cost-effective month to purchase propane?
Fall officially begins this week, and despite the uncharacteristically mild weather we’ve had in the Hudson Valley in recent weeks, there’s no disputing that crisp days and nights are on the way in the not-too-distant future.
That makes now, in late September and early October, an excellent time to schedule your next propane supply, among other things.
Why? There are four major causes for this:
- There is a lack of demand. Propane prices rise in response to increased demand, which is strongest when temperatures drop. Propane prices might also rise during the summer months, when people pack up their campers and RVs for a vacation or camping trip. Early fall is a “shoulder season” between these peak demand times, which means it’s frequently the greatest time to save money on propane tank refills.
- The weather has been more consistent.
- Sudden cold spells are prevalent in late autumn and early winter, but occur less frequently in the early fall.
- It assists you in remaining prepared.
- Extreme cold can quickly cause propane shortages, resulting in no-heat situations as people rush to fill their tanks. Cold weather can sometimes cause power outages, necessitating the use of propane to keep your family safe and warm. You’ll have piece of mind knowing that your family will be secure in any weather if you schedule your propane tank refill in the early fall.
- You will have all of the conveniences of home.
- You’ll be counting on gas to bring home comfort throughout the heating season, whether you’re firing up the propane grill for a game, lighting up your propane fireplace for a warm evening at home, or turning up the propane spa for a cold night bath. Fill your propane tank immediately to ensure that you’ll have comfort for months to come.
Why are propane prices in Ontario so high?
As global demand affects domestic stockpiles, higher propane prices are expected in Ontario this winter.
Photo courtesy of
WINCHESTER
Natural gas and propane have been the less expensive option for household and industry for years, including various farming procedures like drying a harvest of corn, soybeans, or wheat.
The recent news that propane prices in Canada could rise by 300 percent is concerning.
The price of propane for residential and farm usage had been consistent and predictable up until now. That, like so many other industry norms, could have just altered.
Experts in the gas and oil industries blame increased domestic pricing on Canadian natural gas shipments to China. According to news reports, Edmonton’s growth is 297 percent. The rise reflects a dollar price of $1.40 per gallon, up from.25 cents per gallon previously.
Propane prices are at a seven-year high, and the industry is waiting to see how the winter will affect propane and natural gas supplies. The colder winter puts increased demand on the energy producing industry as gas replaces oil as a heating fuel. Increased exports just put further strain on domestic sources.
Guy Fuels in Winchester, Ontario, is a long way from China and the world’s oil and gas hubs. Guy Fuels & Propane is a family-owned and run company.
As it switched from providing fuel for oil furnaces to catering to a rising demand for propane and natural gas-powered furnaces, the local fuel firm faced hurdles.
Chris Guy and Martine Thurler-Guy own and operate Guy Fuels & Propane. They are in charge of the region’s business and residential propane services.
While propane costs in western Canada are skyrocketing, propane suppliers in Ontario aren’t seeing the same thing, at least not yet.
Price hikes will have an impact on a farmer’s bottom line because 5% of the company’s customers use propane to dry their crops.
“In the last week and a half, we’ve seen a bit of relief in higher pricing,” Martine remarked. ” Inventories are rising slightly, but they are still lower than they would be at any other time of year.
She expressed optimism about the markets, despite the fact that she acknowledged that markets can alter at any time and without warning.
“It relies on the weather, as well as the tremendous rise in exports to China and Europe.”
Because the profit margin for exporting natural gas goods looks to be higher than domestic prices, companies focus their efforts where they can make the most money.
“It’s affecting our domestic prices and depleting supplies to never-before-seen levels,” Martine said.
“Unfortunately, the government charge has not benefited the end user, as it increases by 33% every year.”
“Normally, pricing would be higher in January.” This summer, we looked for a decrease in the cost of propane in the market, but we didn’t find it. Normally, we would book a lot of volume for corn dryers and large commercial users over the summer months, but despite what is common in the industry regarding a price drop during the summer, it did not happen.
“We honestly do our best to give a product at fair and competitive costs,” Chris remarked in an attempt to maintain a consistent pricing approach. Large-scale contracts are frequent, and we provide fixed pricing for high-volume users.
He went on to say that as the propane stockpile grows, the market would respond by lowering prices.
“With COVID, we’ve encountered big obstacles, and figuring out how to protect our personnel, their families, and our customers has been critical,” Chris added. We are a critical business, and for a time, we operated with two completely independent teams to ensure ongoing operation in the event of a COVID epidemic. We loosened loan terms, and our gas business suffered as a result. Yet, in comparison to the countless enterprises that were forced to close their doors, our hardship seemed insignificant.
Martine explained that while the propane market Guy Fuels serves appears to be straightforward, it is actually rather complex, and it is influenced by global decisions as well as local weather.
“There are three things we need to perform effectively and that our clients rely on,” Martine said. “Secure supply, simple fuel management systems, and competitiveness.”
Covid has had an impact on every supply chain in society, and a drop in oil production has had an impact on propane stockpiles. Another problem is a labor scarcity, as well as the difficulty of delivering propane to market.
How long would a hundred gallons of propane keep you warm?
We use a variety of home propane tank sizes for heating. The smallest of these tanks is a 100-gallon propane tank. We’ll investigate how long a 100-gallon propane tank can be used to heat a home.
At first glance, the math appears to be straightforward. The 100-gallon propane tank, for example, will last 50 40 days if we use 2 gallons of propane every day for heating. Because of the 80 percent tank rule, a 100 gallon propane tank does not contain 100 gallons of propane when fully charged; instead, it contains 80 gallons of propane when fully charged (safety measure).
In practice, though, we must consider our heating requirements. These are mostly determined by the size of our residence (square footage). As we’ll see later, 100-gallon propane will last anywhere from 11 to 85 days depending on home size and propane consumption in the United States (almost 3 months).
To figure out how long a 100-gallon propane tank will endure, we’ll need to know the following information:
- The heating energy in one gallon of propane is 91,500 BTU.
- A 100-gallon propane tank holds 80 gallons of propane when fully charged. This is a safety precaution; if a 100 gallon contained 100 gallons of propane, the pressure on the internal wall of the propane tank may become dangerously high at higher temperatures.
- The heating energy in this 80 litres of propane is 7,320,000 BTU.
We can figure out how long a 100-gallon propane tank will survive in two ways:
We’ll demonstrate how to perform both calculations. You should use the first calculation if you know your heating demand (which can range from 10,000 to 200,000 BTU/h).
The second estimate, which is based on average propane consumption and house size, is a simpler way to figure out how long a 100-gallon tank will last.
Note: You may find out how long all propane tanks (from 1 pound to 2,000 gallon) last by visiting this page.
Let’s start with the theoretical calculation, then go on to the far more realistic second calculation (house size based):
How can I extend the life of my propane tank?
Propane is a very efficient and adaptable household fuel in northern Arizona. It has the ability to heat our dwellings as well as the water within them. It can assist us in preparing delectable meals on a propane range or on your backyard grill. With propane fireplaces, firepits, and patio heaters, it provides us with comfortable comfort, and it does it with higher efficiency and cost-effectiveness than electricity!
However, amid difficult circumstances, you’ll want to get the most out of your propane supply. We’ve compiled a list of ideas to help you get the most out of your gas without sacrificing comfort or convenience.
Dial Down The Water Heater
The temperature of most water heaters is fixed to 140 degrees Fahrenheit at the manufacturing. You don’t need it that high, to be honest. Scalding is a problem at such temperature, especially for newborns, children, and the elderly. Reduce the temperature to 120 degrees Fahrenheit to have lots of hot water while saving money on propane.
Do you want to use even less gas to heat your water? Install a propane tankless water heater and you’ll be able to reduce your propane usage for water heating by a third or more!
Maintain Your Propane Appliances
The majority of your propane gas will be used for house heating if you use propane for that purpose. An yearly tune-up and regular filter changes will help your home heating system perform at peak efficiency, allowing you to use the least amount of propane necessary to keep your home warm, safe, and pleasant.
Use A Programmable Or Smart Thermostat
You can set your thermostat for different temperatures at different times of the day with programmable and smart thermostats. You won’t have to waste propane heating your home while you’re at work because you forgot to turn the thermostat down.
Smart thermostats may now be operated by your phone or tablet, allowing you to maximize your comfort while lowering your gas consumption at any time, all in real-time!
Maintain Your Propane Tank
Your gas tank may develop small cracks or leaks over time, causing your propane supply to steadily deplete. Not just for the safety of your supply, but also for the safety of your home and loved ones, you should have your tank professionally inspected and serviced on a regular basis.
Is the province of Ontario experiencing a propane shortage?
Thousands of people who rely on propane for heat are still suffering as a result of a propane shortage in Ontario and Quebec.
What is behind the rise in propane prices?
Increased propane prices can be aggravating and even painful at times. But try to rest easy knowing that propane is still one of the most cost-effective options to heat your home and power your appliances. Propane accomplishes all of this while lowering carbon emissions.
Furthermore, historical trends have proven that what goes up must come down when it comes to prices. It’s only a question of when. The feeling among the local propane companies, as well as the industry in general, is that the sooner the better.
Propane Price Swings Are More Moderate than Oil
You may have noticed that when compared to heating oil, gasoline, and other fuels generated from a barrel of crude oil, price swings with propane are more moderate. According to state data published at the end of March 2022, the retail price of propane is 27 percent more than a year ago, while the retail price of heating oil is up 76 percent.
Electricity is also not cheap. With an average retail price of 19.50 cents per kWh, New York is among the top ten states with the highest average retail price of electricity in the residential sector. To put that in context, the average electricity rate in the United States is 13.75 cents per kWh.
Propane: A Domestic Form of Energy
One of propane’s advantages is that it is a wholly domestic energy source. In fact, the United States exports roughly twice as much propane to the rest of the world as it consumes domestically.
Despite the fact that propane is still valued on the global market in the same way that oil is, the quantity of domestic North American production ensures supply stability and helps to temper pricing in the United States.
Crude oil, on the other hand, is still an imported product, even if we produce a lot of it here, and we still obtain it from certain countries who don’t like us very much.
Supply and Demand
A common factor for higher propane pricing is a mix of high demand and lower-than-average inventory. While you may associate propane with home heating and appliance use, it has a much broader application.
For example, due of its increased use as a petrochemical feedstock, the great majority of which are sourced from crude oil and natural gas, global demand for propane has surged. Many end products, such as plastic, paper, glue, and detergents, are made from these petrochemicals. The main users of propane are petrochemical companies.
According to the Energy Information Administration, despite rising U.S. prices, global demand for U.S. propane has remained stable since foreign prices for propane and other feedstocks have also climbed.
Here are a few more of the many variables that can influence the amount you pay for propane in the end.
Global Conflicts and Natural Disasters
When war, political unrest, conflict, or natural disasters such as tsunamis, earthquakes, or hurricanes strike other parts of the globe, crude oil and natural gas prices might be affected. Because propane is a by-product of both crude oil and natural gas, higher costs for these fuels affect propane pricing.
All energy prices were rising before the commencement of the war in Ukraine in late February, in anticipation of possible penalties against Russia’s energy industry if the country attacked Ukraine.
Russia wields power as the world’s third-largest producer of petroleum and liquid fuels, trailing only the United States and Saudi Arabia. It is a major crude oil and natural gas exporter.
Even the possibility of an interruption in energy supplies will have a significant impact on commodity traders’ purchasing and selling decisions. This is known as the fear factor in the frantic world of investment.
When Russia invaded and the US imposed an embargo on Russian imported oil and petroleum products, with other nations anticipated to follow suit, it created a huge energy hole that needed to be filled. Those who earn a living on the energy markets don’t like it when things are uncertain. This comprises both speculators wagering on price movements and hedgers reducing risk for their clients involved in oil production or consumption.
Propane Exports
Many people are unaware that the United States is a major propane exporter, and that business is growing. This is beneficial for the big wholesale propane providers, but it raises demand even more in an industry that doesn’t typically hold large amounts of propane at once. Many propane providers are compelled to deliver the amount of propane they’ve agreed to export, leaving even less propane available for domestic use.
Weather Extremes
A scarcer market develops when supply is reduced during a period of strong demand, such as the winter months. When a cold spell is particularly severe or lasts longer than usual, the scarcity is exacerbated. People may begin to panic buy, as we witnessed with the toilet paper scarcity at the outset of the pandemic.
It isn’t just chilly weather that can drive up propane usage. During the agricultural growing season, heavy rains result in abundant harvests that must be dried quickly and in large quantities. Propane is one of the fuels used to dry crops. Propane usage in corn-producing states normally increases during the corn harvest in September and October, followed by a higher increase in January due to space-heating needs.
Other Factors That Influence Price
Long-term considerations such as proximity to supply, transportation constraints, energy legislation, and industry patterns have all influenced where propane prices move. These concerns have also surfaced more recently:
- The cost of transporting fuel has increased.
- COVID-19-related workforce concerns have resulted in additional costs.
- Shortages have resulted from supply chain issues, causing shipment delays and higher prices for supplies, parts, tanks, and other resources.
What Comes Next?
We don’t know where things will go from here, but if history is any indication, we may expect big price drops in the not-too-distant future. Nothing will make your local propane company happier than a return to regular costs.
Until then, put your faith in your propane supplier, and let’s hope that, regardless of what happens with energy prices, we’ll soon be living in a more peaceful world.
What does propane’s future hold?
With severe outages in the Texas electrical grid, hackers launching a ransomware attack on a major pipeline, and alarming news about climate change, the future of energy in the United States is a topic worth considering.
As a result, propane has proven to be an excellent alternative energy source for Americans now and in the future. The propane sector is well-prepared, and it is continuing to prepare, to handle today’s issues, as well as to innovate in order to address tomorrow’s prospective, looming challenges.
Securing Our Energy Future
Propane usage in the residential sector has been rapidly increasing. Throughout the United States, current real estate booms and home construction patterns will undoubtedly lead to more homes with propane equipment such as heating systems, ranges, water heaters, and laundry dryers. New homebuyers continue to prefer propane gas over other energy sources because of its efficiency and convenience. Many people are also opting to switch their existing home heating systems from electric to propane. It’s not surprising, considering that households that use propane instead of electricity can cut their greenhouse gas emissions by nearly half.
Based on these projections, propane demand in the United States is predicted to exceed 10 billion gallons per year by 2025.
The propane business has the potential to meet our country’s energy needs while also supplying domestic energy that is not reliant on imports or the old and failing infrastructure of utilities.
Propane: A Cleaner and Greener Energy Source
The propane business is addressing two significant issues at once: meeting rising demand for cleaner fuel and preventing climate change.
Propane’s use as a transportation fuel is one of the most important ways it may assist lower the country’s greenhouse emissions.
Over the next five years, the demand for propane autogas is predicted to skyrocket. The introduction of autogas to school buses resulted in a 960 percent rise in the number of school buses utilizing this fuel, and autogas demand is projected to continue and extend into other sectors.
Package and parcel delivery services are one area poised for expansion, as demand for home delivery skyrocketed during the COVID-19 pandemic. Because of the simplicity and convenience, many individuals are continuing to use delivery services for everything from takeout to household necessities now that the limitations have been lifted. The more of these fleets switch to autogas, the more greenhouse gas emissions will be reduced.
Renewable energy also has a big influence on the environment since it reduces our reliance on fossil fuels. Drilling for oil or fracking for natural gas, for example, emit extremely toxic and harmful emissions that can impact ecosystems, soil supplies, and water quality.
Renewable propane is a byproduct of the renewable diesel process that has recently been developed in Europe and North America. Biomass, animal fats, vegetable oils, and triglycerides are all good sources of renewable propane. Renewable propane helps to meet the rising demand while also lowering the environmental impact.
Take advantage of the security, comfort, and convenience that propane provides now and in the future. Become an Advanced Propane customer now and let us show you how we can help your house or company in Tennessee or Southern Kentucky!
